Project Cost and Control Flashcards
(120 cards)
1
Q
REFERS TO THE TOTAL FINANCIAL
RESOURCES
REQUIRED
COMPLETE A PROJECT
TO
IT ENCOMPASSES ALL EXPENSES RELATED TO
LABOR, MATERIALS, EQUIPMENT, FACILITIES,
AND CONTINGENCY PLANS.
A
PROJECT COST
2
Q
ARE EXPENSES THAT CAN BE DIRECTLY TRACED TO
THE CONSTRUCTION PROJECT.
A
DIRECT COST
3
Q
wages, salaries, and benefits of workers,
engineers, and subcontractors working on-site
A
Labor Costs
4
Q
cement, steel, sand, gravel, lumber, and
other materials required for construction.
A
Materials Costs
5
Q
rental or purchase of heavy machinery such
as excavators, cranes, concrete mixers, and trucks
A
Equipment Costs
6
Q
ARE EXPENSES THAT SUPPORT THE PROJECT BUT ARE NOT
DIRECTLY TIED TO SPECIFIC CONSTRUCTION ACTIVITIES.
A
INDIRECT COST
7
Q
utilities, office rent, project management
expenses, and insurance
A
Overhead Costs
8
Q
salaries of office staff, engineers, and
accountants managing the project.
A
Administrative Costs
9
Q
reserved funds for unexpected issues such
as price fluctuations, weather delays, or design changes.
A
Contingency Costs
10
Q
_________REMAIN CONSTANT REGARDLESS OF
PROJECT PROGRESS. THESE INCLUDE:
Salaries of permanent staff
Equipment rentals (if leased for a fixed period)
Office expenses (utilities, rent, insurance)
A
FIXED COSTS
11
Q
___________CHANGE DEPENDING ON PROJECT
ACTIVITIES AND PROGRESS. THESE INCLUDE:
Labor wages (overtime or additional workers)
Material costs (based on quantity used)
Fuel and electricity consumption for machinery
A
VARIABLE COSTS
12
Q
IS THE PROCESS OF MONITORING AND
MANAGING PROJECT EXPENSES TO
ENSURE THAT THEY STAY WITHIN THE
APPROVED BUDGET
IT INVOLVES TRACKING ACTUAL COSTS, COMPARING
THEM WITH ESTIMATES, IDENTIFYING VARIANCES,
AND TAKING CORRECTIVE ACTIONS TO PREVENT
COST OVERRUNS.
A
COST CONTROL
13
Q
Ensures that
actual expenses
do not exceed
the allocated
budget
A
PREVENTS
BUDGET
OVERRUNS
14
Q
Reducing
unnecessary
costs
maximizes
project profits.
A
IMPROVES
PROFITABILITY:
15
Q
Proper
allocation of
materials,
labor, and
equipment
minimizes
waste
A
ENHANCES
RESOURCE
MANAGEMENT
16
Q
Helps ensure
timely project
completion
without
financial
struggles
A
AVOIDS FINANCIAL
LOSSES AND
DELAYS
17
Q
Well-managed
project costs
increase
credibility and
attract future
business
A
BUILDS CLIENT
AND INVESTOR
TRUST
18
Q
ALSO KNOWN AS CONCEPTUAL ESTIMATES,
ARE ROUGH COST PROJECTIONS MADE IN THE
EARLY STAGES OF A PROJECT WHEN
DETAILED PLANS ARE NOT YET AVAILABLE.
USED FOR FEASIBILITY STUDIES, BUDGET
PROPOSALS, AND PROJECT APPROVALS.
A
PRELIMINARY
ESTIMATES
19
Q
IS A MORE ACCURATE COST CALCULATION
BASED ON FINALIZED DESIGNS, MATERIAL
SPECIFICATIONS, LABOR REQUIREMENTS, AND
EQUIPMENT COSTS.
INCLUDES UNIT COST BREAKDOWNS, SUPPLIER
QUOTES, AND POTENTIAL CONTINGENCIES.
USED FOR BIDDING, BUDGETING, AND
SECURING PROJECT FUNDING.
A
DETAILED
ESTIMATES
20
Q
IS THE PROCESS OF MEASURING AND LISTING
THE QUANTITIES OF MATERIALS NEEDED FOR
A PROJECT BASED ON DRAWINGS AND
SPECIFICATIONS.
PRICING
ASSIGNS
COSTS
TO
THESE
QUANTITIES, CONSIDERING MATERIAL PRICES,
LABOR RATES, AND EQUIPMENT COSTS.
A
QUANTITY TAKEOFF
& PRICING
21
Q
Fluctuations in material and
labor costs due to supply and demand
A
MARKET PRICES
22
Q
Rising prices over time affect the
project’s total cost
A
INFLATION
23
Q
Remote locations, poor soil
conditions, and difficult terrain increase costs
A
SITE CONDITIONS
24
Q
________sets an initial
financial
plan
a
project based on detailed
cost estimates
A
Budgeting
25
________ involves continuous monitoring
and updating of financial
projections
based
actual
expenses
project progress.
Forecasting
26
-A technique used to measure
performance
project
by
comparing planned work
vs. actual work vs. costs
incurred.
-Helps determine if a
project is ahead or behind
schedule and under or
over budget.
EARNED VALUE MANAGEMENT
(EVM)
27
Compares budgeted costs
with actual expenditures
to identify discrepancies.
Helps determine whether
cost overruns are due to
poor estimates, material
wastage, or inefficient
labor.
VARIANCE ANALYSIS (PLANNED
VS. ACTUAL COSTS)
28
Involves
regularly
monitoring expenses to
ensure spending aligns
with the budget.
Helps determine if a
project is ahead or behind
schedule and under or
over budget.
COST TRACKING AND
REPORTING
29
Used
for
large-scale
construction projects to schedule and track
costs
Primavera
P6:
30
Helps in planning, scheduling,
and managing project costs.
MS Project
31
Provide real-time cost tracking, forecasting,
and reporting.
Procore, SAP, Buildertrend
32
a “deliverable oriented
hierarchical decomposition of
the work to be executed by the
project team.”
singlehandedly integrates
scope, cost and schedule
baselines ensuring that project
plans are in alignment
WORK BREAKDOWN
STRUCTURE (WBS)
33
________- clearly
demonstrates the relationship between the project
deliverables (i.e., products, services or results) and
the scope (i.e., work to be executed
Deliverable-Based Work Breakdown Structure
34
_________ are summary deliverable
descriptions. _________ in each Leg of
the WBS are all the unique deliverables required to
create the respective Level 1 deliverable
Level 1 Elements, The Level 2 Elements
35
__________ requires work associated with
multiple elements be divided into the work unique to
each Level 1 Element. A _________ is created to
describe the work in each Element.
A Phase-Based WBS, WBS Dictionary
36
. Regardless of the type of WBS, the lower
Level Elements are all ________
deliverables.
37
the formal project document that provides detailed
descriptions of key information for all Elements in
the Work Breakdown Structure and must comply
with the 100% Rule. The 100% Rule requires that the
WBS captures 100% of the project scope
WBS DICTIONARY
38
Enter the WBS Title and identify it as a Work Package, Planning and/or Control Account.
WBS Code
39
Name the single organization, group or individual that has been assigned sole responsibility for making sure the Work Package is completed. Include contact information.
Responsible Organization/Individual
40
Define Work Package boundaries. Frame the scope content so that it is clear what scope is included and excluded. If it is a Planning Package, describe the known and unknown scope.
Description
41
Identify the product, service or results created when all of the work in this Work Package is complete. Include any critical intermediate deliverables.
Deliverables
42
Describe the functional and physical requirements in order to meet customer expectations and quality requirements. Include any unique approvals required for acceptance.
Acceptance Criteria
43
Designate the budget for this Work Package, plus any critical resource information and assumptions.
Budget
44
List any Start Dates, End Dates, Intermediate Milestones, Interdependencies, Constraints and any assumption for the deliverables.
Milestones
45
Include any known threats and opportunities with response strategies.
Risks
46
Describe any additional information, such as references, related work packages, etc.
Additional Information
47
Identify content
containing project
deliverables, such
as the Project
Charter, Scope
Statement and
Project
Management Plan
(PMP) subsidiary
plans
Gather Critical
Documents
48
Identify the
appropriate
project team
members
Identify Key Team
Members
49
Level 1 Elements
are summary
deliverable
descriptions that
must capture 100%
of the project
scope
Define Level 1
Elements
50
Begin the process
of breaking the
Level 1
deliverables into
unique lower level
deliverables. This
“breaking down”
technique is called
_________-
Decomposition.
51
The descriptions
should include
information such
as, boundaries,
milestones, risks,
owner, costs, etc.
Create WBS
Dictionary
52
Export or enter the
Work Breakdown
Structure into a
Gantt chart for
further scheduling
and project
tracking
Create Gantt Chart
Schedule
53
Task of employing available resources in a way that
maximizes or minimizes specific objectives under a
set of constraints.
RESOURCE ALLOCATION
AND OPTIMIZATION
54
require
organizations to collate, clean, transform, and model relevant
data such that optimal allocation decisions can be made.
RESOURCE ALLOCATION
AND OPTIMIZATION WORKFLOWS
55
__________-, which involves assigning and scheduling
resources, is crucial for the economical and efficient use of
manpower, materials, and equipment throughout the projec
Resource allocation
56
Identify the skills,
expertise, and
availability of
team members, as
well as any
external resources
needed for the
project
Resource Planning
57
Allocate resources
to critical tasks
that contribute
directly to project
objectives,
ensuring that key
deliverables are
completed on time
and within budget.
Prioritization
58
Monitor resource
capacity and
workload to
prevent
overallocation or
underutilization of
resources.
Capacity
Management
59
Assign team
members to
projects and tasks
that align with
their strengths
and capabilities,
maximizing
efficiency and
quality of work
Skill Matching
60
Use iterative
planning
approaches to
adjust resource
allocations
dynamically based
on evolving
project
requirements.
Flexible Scheduling
61
Collect feedback
from team
members,
stakeholders, and
project metrics to
refine resource
allocation
strategies over
time
Continuous
Monitoring and
Optimization
62
__________, also known as Value Management
or Value Analysis
Value Engineering
63
one of the most effective techniques known to identify and
eliminate unnecessary costs in product design, testing,
manufacturing, construction, operations and maintenance.
Value Engineering
64
It is claimed that application of value engineering can result in
a saving of about____________ of the construction
costs
15 percent – 20 percent
65
the least cost required to
provide the functions that are
required by the user of the finished
project
Worth
66
the total amount of money
required to obtain and use the
functions that have been specified
Cost
67
the relationship of worth to
cost as realized by the owner, based
on his needs and resources in any
given situation
Value
68
_____________ is the process of identifying,
documenting, evaluating, negotiating, and implementing
change orders in a construction project.
It involves communicating with all the stakeholders, such as
the owner, the contractor, the architect, the engineer, and the
subcontractors, to ensure that the changes are justified,
feasible, and beneficial for the project.
It also requires keeping track of the impact of the changes on the
project's scope, quality, schedule, and budget, and updating the
contract documents accordingly.
Change order management
69
when the change will not
have a cost implication
zero cost change order
70
when
the total cost change can be
fully calculated
lump sum change order
71
when
the quantity required cannot be
fully calculated
unitary cost change orders
72
when the contractor can’t
calculate the cost
time and material change orders
73
Also known as “Requirement Creep” or “Feature
Creep”
SCOPE CREEP
74
refers to how a project’s requirements
increase over the project lifecycle
It happens when the boundaries of a project expand without
proper checks.
It is typically caused by key project stakeholders changing
requirements or sometimes by internal miscommunication and
disagreements
SCOPE CREEP
75
Costs fluctuate based on a wide variety of factors,
most of which a contractor cannot fully control.
These include tariffs, over-reliance on importation,
infrastructural deficits, economic events, changes in
supply and demand, and unfortunately, even profiteering.
When production can’t keep up with demand, we see high prices;
when production keeps up, prices stabilize; and when demand
drops, we see low prices.
MATERIAL PRICE
FLUCTUATIONS
76
Wrong cost estimation
can cause construction to shut down for weeks,
months, or even get dropped
Budget Inaccuracies
77
Many skilled workers laid off during
the downturn left to take jobs in other industries
Labor Challenges
78
Effectively
managing them, their timelines and schedules, compliance
documentation, and collaborating with other contractors is vital
to a project’s success
Subcontractor Schedules and Compliance
79
Understanding that extreme
conditions can’t be controlled, allows you to be
prepared, which can make a difference.
Poor Weather
80
Avoiding
automation and relying on manual, labor-intensive
processes ultimately leads to more human error, wasted
time, and poor communication and coordination.
Slow Adoption of Construction Technologies
81
Whether it’s communication
from the client, contractor, in the field or at the office, everyone
should be apprised as new updates like change orders or redesigns
. Lacking Good Communication
82
Estimators rely heavily on historical data and
accurate project information
Inadequate Data
83
Despite the use of advanced software, errors in
inputting data or misinterpretation of project
requirements can lead to inaccuracies
Human Error
84
Failing to include contingencies in estimates can result in
financial setbacks when unforeseen challenges arise
Failure to Account for Contingencies
85
__________ are a set of tools, techniques, and processes used to manage and
regulate project execution. They help project managers monitor and control six key
constraints to ensure project success
Project controls
86
Ensures project activities are
completed within the set schedule.
TIME MANAGEMENT
87
Focuses on budgeting, estimating,
and controlling costs to prevent
overspending
COST MANAGEMENT
88
Defines and controls the project’s
deliverables and boundaries to prevent
scope creep.
SCOPE MANAGEMENT
89
Ensures that project outputs meet
required standards and stakeholder
expectations
QUALITY MANAGEMENT
90
Identifies, assesses, and mitigates
potential risks that could impact the
project.
RISK MANAGEMENT
91
Allocates and optimizes manpower,
materials, and equipment for efficiency.
RESOURCE MANAGEMENT
92
Effective____________relies on various tools and
techniques to monitor, manage, and optimize project
performance. Below are key project control methods
used to ensure projects stay on track
project control
93
Establishes reference points for cost, scope, and
schedule to track project progress against initial plans.
PROJECT BASELINES
94
Defines a systematic approach for identifying, assessing, and
implementing project changes, ensuring stakeholders are
informed
CHANGE CONTROL PLAN
95
A documented list of potential risks, their impact,
and mitigation strategies to proactively address
project uncertainties.
RISK REGISTER
96
A responsibility matrix that clarifies roles and
accountability within a project, ensuring smooth
coordination
RACI CHART
97
Outlines quality control processes and standards to maintain the
expected level of project deliverables.
QUALITY MANAGEMENT PLAN
98
A regular update summarizing project progress,
challenges, and key metrics to support informed
decision-making.
PROJECT STATUS REPORT
99
Legally binding agreements that define project scope,
responsibilities, and risk-sharing mechanisms.
PROJECT CONTRACTS
100
Tracks costs and financial progress in construction projects,
allowing for effective budgeting and risk management
CONSTRUCTION WIP (WORKING IN PROGRESS) REPORT
101
- oversees the entire
project and ensures alignment with project
objectives while maintaining control over
scope, schedule, cost, and quality
- Monitor
project
performance
and progress.
- Ensure
that
project
control
methods are
implemented
effectively
- Report
on
project status,
forecasting,
and variances
regularly
PROJECT MANAGER
102
- Manages cost estimation, budgeting, and
cost control throughout the project
lifecycle
- Prepare
detailed cost
estimates for
each phase of
the project
- Monitor
expenditures
and
ensure
they
with
approved
budget.
- Identify cost
saving
opportunities
through value
engineering.
COST ENGINEER
103
- Develops, monitors, and updates the
project schedule to ensure timely
delivery.
- Create a detailed baseline
schedule using tools
like Primavera P6 or Microsoft Project
- Monitor and
update
the
schedule
based
on
progress and
unforeseen
delays.
- Conduct
schedule risk
analysis
and
recommend
adjustments
SCHEDULER/PLANNER
104
- Execute the physical construction work as specified in
the project plan
- perform construction activities within the agreed timeline and budget
- ensure compliance with contractual obligation
- communicate challenges and progress to the project manager
CONTRACTORS/SUBCONTRACTORS
105
- Provide the technical design and
specifications required for project
execution
- develop and deliver detailed designs, drawings, and specifications
- review and approve submittals for materials and equipment
- collaborate with the project team o resolve technical challenges
DESIGN TEAM
106
Uncontrolled changes or additions to the project scope can arise
due to poorly defined project requirements, client demands, or
unclear communication
SCOPE CREEP
107
Insufficient availability of skilled labor, equipment, or materials
can hinder project progress
RESOURCE CONSTRAINTS
108
Misestimating project costs during the planning phase due to
incomplete data or unforeseen variables
INACCURATE COST ESTIMATION
109
Delays caused by unforeseen circumstances, such as weather,
supply chain disruptions, or design revisions.
SCHEDULE DELAYS
110
Complex and evolving regulations in engineering disciplines
(e.g., safety, environmental, or building codes)
REGULATORY AND COMPLIANCE
ISSUES
111
Failure to identify, assess, and mitigate risks effectively during
the project lifecycle.
POOR RISK MANAGEMENT
112
Ineffective communication between stakeholders, contractors,
and project teams
COMMUNICATION ISSUES
113
BEST PRACTICES FOR
PROJECT CONTROL
COMPREHENSIVE PROJECT PLANNING
EFFECTIVE BUDGET CONTROL AND COST MANAGEMENT
LEVERAGE TECHNOLOGY FOR BETTER CONTROL
OPTIMIZED RESOURCE MANAGEMENT
REGULAR PERFORMANCE MONITORING AND REPORTING
114
__________- is a project management
technique used to shorten the project duration by
allocating additional resources to critical tasks. This
is done to meet deadlines or recover from delays
while minimizing cost overruns
Crash scheduling
115
Generally results in increase of the overall cost,
challenge faced by the project manager is to
identify the activities to crash and the duration
reduction for each activity. Such that project
crashing is done in the least expensive manner
possible
crash scheduling
116
The __________ refers to the estimated
activity duration used with CPM or PERT
in the computation of earliest to latest
start or finish times
normal time
117
The _________ referes to the activity
cost under the normal activity time.
normal cost
118
The __________refers to the shortest
possible time to complete an activity
with additional resources.
crash time
119
The __________ refers to the activity
cost under the crashing activity time.
crashing cost
120
_________ increase as project duration
decreases.
____________ increase as production
duration increases.
Crashing costs, Indirect costs
